Marvell Technology, Inc.
Reconciliations from GAAP to Non-GAAP (Unaudited)
(In thousands, except per share amounts)

Three Months Ended

Year Ended

January 29,
2022

October 30, 2021

January 30,
2021

January 29,
2022

January 30,
2021

GAAP gross profit:

$ 686,434

$  587,820

$                    421,132

$  2,064,225

$  1,488,350

Special items:

Share-based compensation

9,243

9,370

4,265

31,081

16,320

Amortization of acquired intangible assets

178,725

169,691

83,327

609,481

338,197

Other cost of goods sold (a)

2,490

21,470

796

193,523

35,284

Total special items

190,458

200,531

88,388

834,085

389,801

Non-GAAP gross profit

$ 876,892

$  788,351

$                    509,520

$  2,898,310

$  1,878,151

GAAP gross margin

51.1 %

48.5 %

52.8 %

46.3 %

50.1 %

Non-GAAP gross margin

65.3 %

65.1 %

63.9 %

64.9 %

63.3 %

Total GAAP operating expenses

$ 651,782

$  621,161

$                    422,868

$  2,411,893

$  1,746,739

Special items:

Share-based compensation

(125,514)

(109,720)

(55,214)

(446,464)

(225,219)

Restructuring related charges (b)

(1,301)

(5,861)

(9,570)

(32,342)

(170,759)

Amortization of acquired intangible assets

(116,059)

(109,591)

(26,355)

(369,896)

(105,419)

Legal settlement (c)

—

—

(36,000)

—

(36,000)

Other operating expenses (d)

(19,043)

(25,460)

(12,480)

(130,135)

(49,498)

Total special items

(261,917)

(250,632)

(139,619)

(978,837)

(586,895)

Total non-GAAP operating expenses

$ 389,865

$  370,529

$                    283,249

$  1,433,056

$  1,159,844

GAAP operating margin

2.6 %

(0.2) %

(7.8) %

(8.7) %

Other cost of goods sold (a)

0.2 %

1.8 %

0.1 %

4.3 %

1.2 %

Share-based compensation

10.0 %

9.8 %

7.5 %

10.7 %

8.1 %

Restructuring related charges (b)

0.1 %

0.5 %

1.2 %

0.7 %

5.8 %

Amortization of acquired intangible assets

22.0 %

23.1 %

13.7 %

21.9 %

14.9 %

Legal settlement (c)

— %

—  %

4.5 %

— %

1.2 %

Other operating expenses (d)

1.4 %

2.1 %

1.6 %

3.0 %

1.7 %

Non-GAAP operating margin 

36.3 %

34.5 %

28.4 %

32.8 %

24.2 %

GAAP interest and other income (loss), net

$  (32,578)

$ (34,235)

$                   (21,104)

$                     (135,827)

$  (63,779)

Special items:

      Debt issuance related costs and other (e)

(3,196)

(98)

6,017

16,629

5,902

Total special items

(3,196)

(98)

16,629

5,902

Total non-GAAP interest and other income (loss), net

$  (35,774)

$ (34,333)

$                   (15,087)

$                     (119,198)

$  (57,877)

GAAP net income (loss)

$     6,168

$ (62,532)

$ 16,536

$                     (421,034)

$                     (277,298)

Special items:

Other cost of goods sold (a)

2,490

21,470

796

193,523

35,284

Share-based compensation

134,757

119,090

59,479

477,545

241,539

Restructuring related charges (b)

1,301

5,861

9,570

32,342

170,759

Legal settlement (c)

—

—

36,000

—

36,000

Other operating expenses (d)

19,043

25,460

12,480

130,135

49,498

Amortization of acquired intangible assets

294,784

279,282

109,682

979,377

443,616

Debt issuance related costs and other (e)

(3,196)

(98)

6,017

16,629

5,902

Pre-tax total special items

449,179

451,065

234,024

1,829,551

982,598

Other income tax effects and adjustments (f)

(26,657)

(24,218)

(49,936)

(129,763)

(77,893)

Non-GAAP net income

$ 428,690

$  364,315

$                    200,624

$  1,278,754

$ 627,407

GAAP weighted average shares — basic

844,419

828,635

673,529

796,855

668,772

GAAP weighted average shares — diluted

862,062

828,635

687,959

796,855

668,772

Non-GAAP weighted average shares — diluted (g)

862,062

845,937

687,959

813,094

679,944

GAAP diluted net income (loss) per share

$        0.01

$     (0.08)

$      0.02

$       (0.53)

$       (0.41)

Non-GAAP diluted net income per share

$        0.50

$      0.43

$      0.29

$        1.57

$        0.92

(a)

Other costs of goods sold includes amortization of acquired inventory fair value adjustments.

(b)

Restructuring and other related items include asset impairment charges, employee severance costs, facilities related charges, and other.

(c)

Represents a legal settlement relating to a commercial agreement.

(d)

Other operating expenses include integration and merger costs associated with acquisitions.

(e)

Debt issuance related costs and other includes the partial term loan repayment and bridge financing.

(f)

Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 5.0%.

(g)

Non-GAAP diluted weighted average shares differs from GAAP diluted weighted average shares due to the non-GAAP net income reported.

Marvell Technology, Inc.
Outlook for the First Quarter of Fiscal Year 2023
Reconciliations from GAAP to Non-GAAP (Unaudited)
(In millions, except per share amounts)

Outlook for Three Months Ended

April 30, 2022

GAAP net revenue

 $1,425 +/- 3%

Special items:

Non-GAAP net revenue

$1,425 +/- 3%

GAAP gross margin

49.6% - 50.6%

Special items:

Share-based compensation

0.7%

Amortization of acquired intangible assets

12.9%

Other costs of goods sold

1.8%

Non-GAAP gross margin

65% - 66%

Total GAAP operating expenses

$667 - $677

Special items:

121

Amortization of acquired intangible assets

99

Restructuring related charges

4

Other operating expenses

15

Total non-GAAP operating expenses

GAAP diluted net income per share

 $0.01 +/- $0.04

Special items:

Share-based compensation

0.15

Amortization of acquired intangible assets

0.33

Other cost of goods sold

0.03

Other operating expenses

0.02

Other income tax effects and adjustments

Non-GAAP diluted net income per share

$0.51 +/- $0.03

Data center

•          Cloud and on-premise Artificial intelligence (AI) systems

•          Cloud and on-premise ethernet switching

•          Cloud and on-premise network-attached storage (NAS)

•          Cloud and on-premise servers

•          Cloud and on-premise storage area networks

•          Cloud and on-premise storage systems

•          Data center interconnect (DCI)

Carrier infrastructure

•          Digital Subscriber Line Access Multiplexers (DSLAMs)

•          Ethernet switches

•          Optical transport systems

•          Routers

•          Wireless radio access network (RAN) systems

Enterprise networking

•          Campus and small medium enterprise routers

•          Campus and small medium enterprise ethernet switches

•          Campus and small medium enterprise wireless access points (WAPs)

•          Network appliances (firewalls, and load balancers)

•          Workstations

Consumer

•          Broadband gateways and routers

•          Gaming consoles

•          Home data storage

•          Home wireless access points (WAPs)

•          Personal Computers (PCs)

•          Printers

•          Set-top boxes

Automotive/industrial

•          Advanced driver-assistance systems (ADAS)

•          Autonomous vehicles (AV)

•          In-vehicle networking

•          Industrial ethernet switches

•          United States military and government solutions

•          Video surveillance

Quarterly Revenue Trend (Unaudited) (Continued)

Three Months Ended

% Change

Revenue by End Market (In thousands)

January 29,
2022

October 30,
2021

January 30,
2021

YoY

QoQ

Data center

$                         574,108

$                         499,748

$                         269,180

113 %

15 %

Carrier infrastructure

241,047

215,108

166,258

45 %

12 %

Enterprise networking

262,950

247,210

160,719

64 %

6 %

Consumer

185,404

182,535

167,697

11 %

2 %

Automotive/industrial

79,469

66,644

33,965

134 %

19 %

Total Net Revenue

$                     1,342,978

$                     1,211,245

$                         797,819

68 %

11 %

Three Months Ended

Revenue by End Market % of Total

January 29,
2022

October 30,
2021

January 30,
2021

Data center

43 %

41 %

34 %

Carrier infrastructure

18 %

18 %

21 %

Enterprise networking

19 %

20 %

20 %

Consumer

14 %

15 %

21 %

Automotive/industrial

6 %

6 %

4 %

Total Net Revenue

100 %

100 %

100 %